Navigating Uncertainty: FTC's Ban on Non-Compete Clauses | The Nebo Company

Earlier this year, the Federal Trade Commission announced a final rule banning non-compete clauses, calling them an unfair method of competition. The rule, set to go into effect on September 4th, 2024 would:

• eliminate current non-compete clauses for all but the most senior executives – those with policy-making power and earning more than $151,164,
• require employers to directly inform employees impacted by the change that non-competes will not be enforced against them in the future, and
• prohibit all non-compete clauses going forward.

Adding to trends like “quiet quitting” and low engagement, which continue to pose a challenge for organizations, an estimated 30 million Americans impacted by this rule will be free to leave their positions for competitors or entrepreneurship overnight. Though many employees are not interested in jumping ship, and litigation over the rule is ongoing, giving thought to how you can invest in and improve your employee experience now is key to navigating the uncertainty caused by this potential change.

At Nebo, we have partnered with organizations to invest in employees and their experience for 20 years. In that time, we found that coaching and team development, in addition to boosting the skills of those leaders involved, can aid in retaining top performers.

• Leadership Coaching with a member of our Community of Practice demonstrates to a leader that the organization values them and their contributions.
• The confidential resource that a coach provides can help a leader through the sort of challenging period that may cause them to leave the organization.
• Partnering with Nebo to design a development session around a specific issue of concern is a great way to meet the moment for a team that may be struggling.

If you are interested in boosting engagement and improving employee experience at your organization ahead of what may be some major changes in the labor market, start a conversation with us today!